Difficult access to credit for the unemployed
First of all, we regularly receive credit applications from unemployed individuals. These are generally people who have recently lost their jobs and have been unemployed for a short time. However, some unemployed individuals enjoy a comfortable wealth acquired during their professional life.
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What determines the granting of credit is the seizable nature of income. In other words, credit can only be granted to a solvent person, that is, a person whose bank can easily seize the income in case of default.
As a result, unemployment benefits are not seizable, which hinders access to credit in principle.
Seizability thresholds for credit for the unemployed
Moreover, the law has organized a progressive regime of income (salaries) seizability. And notably unemployment benefits (a regime different from that of salaries).
Thus, wage garnishment allows the creditor to seize a portion of the salary. Or the social allowance of the debtor for the repayment of their debt.
As for income from activities other than the execution of an employment or apprenticeship contract, such as unemployment or sickness benefits, pension, etc., from January 1, 2013, the following limits must be applied.
| Net monthly income | seized part | seized amount |
| € 0 – € 1,069 | 0 % | 0 |
| < € 1,069.01 < € 1,149 | 20 % | € 15.80 |
| < € 1,149.01 < € 1,386 | 40 % | € 94 |
| + € 1,386 | net beyond € 1,386 | |
Therefore, unemployment benefits are fully seizable beyond a monthly amount of € 1,386.
In other words, this means that below this amount, the creditor cannot seize your unemployment benefit in case of default. In this case, your access to credit is of course reduced and you have little chance of seeing your credit application accepted.
Existence of other guarantees
It may be that a person is unemployed after years of work during which they have acquired a comfortable wealth (e.g., house, car, savings, securities account).
If this unemployed person wants to submit a credit application, the credit intermediary (the broker) will carefully examine their financial situation and see to what extent they can find guarantees.
Finally, most often, it will involve registering a conventional mortgage on a real estate property owned free and clear of charges by the unemployed person.
Note that the mortgage loan is therefore acceptable beyond a certain amount (generally € 25,000) given the notary fees that this type of credit generates.
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